ICICI Prudential AMAC Chief Investment Officer, S. Naren’s Smallcap and Midcap shares have intensified the debate on the advice to completely exit. Radhika Gupta, CEO of Edalweiss Mutual Fund, said that investors were advised not to get entangled in such fear -spread debates. He said that the duration of such debates is just 10 days.
Let us know that S. Naren had advised investors to completely exit smallcap and midcap stocks last week. He said that these shares have become ‘very expensive’, which cannot be justified. Even he has advised to stop this segment SIP. S. Naren said that the SIPS strategy works when there is volatility in the stock market and the valuation is valid.
However, Radhika Gupta advised SIP investors to maintain restraint separate from S. Naren. He said that SIP is an “easy alternative” of investment and is a source of long -term savings and investment for the common man. He spoke to see it on the lines of “Phil It, Shut It, Forgate It” (fill, leave, forget), as most people feel difficulty in understanding the complications of the stock market.
Gupta said that discussions should be avoided to create fear about SIPS. He said that investors should find a good fund manager and maintain investment with understanding and balance for 10 years.
In a post written on her social media account, Radhika Gupta said that investors should mainly understand 4 things-
1. It is very important to keep a balanced while investing anywhere. Investment in small and midcap stocks is not bad, but balance is necessary. An average flexi-cap fund also invests up to 30% in this segment.
2. Understand the market cycle of stock. If you see the returns from the market peak to the lower level (eg 2006 to 2013), it will not look good. So invest from a long-term perspective.
3. Liquidity is very important and can be managed. Edalweiss Mutual Fund made public figures in its funds even before the regulators applied the rules. He claimed that they maintain liquidity without keeping more cash or depending on large cap stocks.
4. Patience and discipline is the most important for investment. No one can disagree with this, the real key to making money is to maintain SIP for a long period. Investors should maintain investment in SIPS for 10 years or more.
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